Schemes that come under the employees’ PF Act are now not applicable to employees who have a salary above a certain limit which is specified by the government. Currently that limit is set at Rs 15000 per month. The employees that come under this category are known as excluded employees – they do not get any benefits from the act.
On October 1, 2008, the government of India extended this scheme to people who live abroad and are working professionals there. Employees who earn over a certain limit are also not part of the scheme – they are referred to as ‘international workers’. – Nirmal Singh 3C Company
After considering the hardships that Indian workers living abroad face, Indian government has brought in some reforms in the scheme and has entered in social security agreements with other countries.
The SSA is based on the following principles that the government has decided on after considering the issues of the international workers.
- Detachment – this will enable the international worker to avoid the double security deposits.
- Totalisation – clubbing of the services provided in other countries to be eligible for pension in India.
- Exportability – to import the benefits that people working abroad earn.
- To treat the national of both countries equally
In order to avoid the dual payments that Indian citizens had to give in foreign countries and to make sure that they are treated equally, all these steps have been taken. The Indian government has been working for the employees so that they get exempted from the social security contribution, regardless of the country they are living in. – Nirmal Singh 3C Company With these changes in the Act, international workers will not struggle abroad.